Math Used When Using Money
Money is something that everyone needs and uses to sustain their daily needs. Money can be used to reinforce basic math skills such as addition, subtraction, multiplication, and other skills such as reading comprehension.
- Budgeting - Budgeting involves understanding how much money you earn and spend over a period of time. When you create a budget, you are creating a plan for spending and saving money.
- Fundamental concept in budgeting and economics is needs and wants. Needs are something you must have in order to survive. Wants are something that you would like to have, but it is something you could do without.
- An important first step to learning to budget is to track your income and expenses.
- An important part of financial success of any individual or family is to be able to establish a budget and then learn to live within that budget.
- Banking -
Extensive math is involved in keeping track of the money in a bank. Not only does banking require extensive math skills, it also requires intense precision and accuracy. Often times, complex formulas are necessary to compute interest and loans. Banking and mathematics are inexorably intertwined.
- Transactions - When someone deposits or withdraws money from a bank, more math is involved to calculate the total in their accounts
- Accumulating Interest - Savings and checking accounts have a wide variety of different interest rates depending on the account type. Interest is calculated and added to a person's account at regular intervals, depending on what their account type dictates. Calculating interest is done using percentages.
- Loans - Loans involve complex mathematics. First, the bank needs to calculate how high of a loan it should give you and how much you will be paying each month for the loan. Calculating this requires consideration of a wide variety of factors ranging from how long the loan is for to how strong your credit history is.
- Centuries of innovation have changed the ways in which the public conducts transactions. Credit cards, debit cards, and automatic transfers are among the many innovations that emerged in the years after World War II. The credit card industry makes money by lending people money and collecting interest on the money borrowed. They also make money from the merchants who use the services of the credit card company to help merchants assist in the selling of their products.
You + Math = Success!